| The Urban Development Zone | The Urban Development Zone | | <img alt="" src="https://resource.capetown.gov.za/cityassets/PublishingImages/Explore%20And%20Enjoy%20Generic%20Header.jpg" style="BORDER:0px solid;" /> | <div class="ExternalClass41D326B564634BEA9675CFB716BE6D85"><p>The Urban Development Zone (UDZ) is a tax incentive administered by SARS, and aims to encourage private sector-led residential and commercial development in inner-city areas with developed public transport facilities. </p></div> | <span>
<h2 class="sectHeading">How does it work?</h2>
<div>
<strong>The UDZ allows businesses which fall within its area to benefit from significant tax savings for building development which fall into the following categories:</strong></div>
<div> </div>
<div><ul><li>The erection, extension or improvement of or addition to an entire building;</li><li>the erection, extension, improvement or addition of a part of a building representing a floor area of at least 1 000 m<span dir="ltr" style="color:#000000;font-family:"segoe ui";font-size:10pt;direction:ltr;">²</span>;</li><li>the erection, extension or improvement of or addition to low-cost housing; and/ or</li><li>the purchase of such a building or part of a building directly from a developer.</li></ul></div></span>
<h2 class="sectHeading">Do you benefit?</h2><p>To find out how you may benefit from this incentive, visit the
<a href="https://www.sars.gov.za/businesses-and-employers/my-business-and-tax/tax-and-urban-development-zones/" target="_blank">SARS dedicated UDZ page<i class="icon link-external"></i></a>.</p><h4>
<a href="https://www.sars.gov.za/" target="_blank">The SARS website</a> provides information on:</h4><ul><li>The requirements that have to be complied with before claiming a deduction;</li><li>the costs that can be claimed;</li><li>the amounts that can be deducted;</li><li>the documentation required;</li><li>the position of developers and buildings located on land owned by third parties; and</li><li>a
<a href="https://www.sars.gov.za/businesses-and-employers/my-business-and-tax/tax-and-urban-development-zones/how-to-work-out-what-to-claim/" target="_blank">UDZ calculator
<i class="icon link-external"></i></a> which can be used to determine the amount that may be deducted.</li></ul><div class="notification with-heading dark-copy pink bg-light-grey"><div class="graphic with-border">
<i class="info note"></i> </div><div class="desc"><h4>Please note</h4><p>The Urban Development Zone benefit extended to 2020 and now includes parts of Maitland, Parow and Oakdale.</p></div></div><p>The recent promulgation of the
<a href="https://www.gov.za/documents/taxation-laws-amendment-act-17#" target="_blank">Taxation Laws Amendment Act (No 22 of 2012)<i class="icon link-external"></i></a> extends the validity period for the Urban Development Zone to 31 March 2020. Furthermore, the City's application to geographically extend the Urban Development Zone has been approved by the Minister of Finance and now includes significant portions of Maitland, Parow and Oakdale. </p><p>This extension complements efforts by the Mayor's Urban Regeneration Programme and the newly-established
<a href="https://resource.capetown.gov.za/documentcentre/Documents/Agreements%20and%20contracts/Voortrekker%20Road%20Corridor.pdf" target="_blank">Voortrekker Road Corridor Improvement District</a> to boost private sector investment in these areas.</p><p>
<a href="https://opengazettes.org.za/gazettes/ZA/2013" target="_blank">The Government Gazette, number 36195, published 27 February 2013
<i class="icon link-external"></i></a> includes lists of properties by Erf number that fall into Urban Development Zones.</p><h2 class="sectHeading">Boundary maps and resources</h2><p>See our maps of the
<a href="https://resource.capetown.gov.za/documentcentre/Documents/Maps%20and%20statistics/Central%20CapeTown%20UDZ%20boundaries%20PDF.pdf" target="_blank">Cape Town Urban Development Zone boundary</a> and the
<a href="https://resource.capetown.gov.za/documentcentre/Documents/Maps%20and%20statistics/Bellville_Parow%20UDZ%20Boundaries%20PDF.pdf" target="_blank">Bellville-Parow Urban Development Zone boundary</a>.</p><ul><li>
<a href="https://resource.capetown.gov.za/documentcentre/Documents/Procedures%2c%20guidelines%20and%20regulations/UDZ_FAQs.pdf" target="_blank">View statistics and frequently asked questions about the Cape Town UDZ.</a> </li><li>
<a href="https://www.sars.gov.za/lapd-it-g12-guide-to-the-urban-development-zone-allowance/" target="_blank">Guide to the Urban Development Zone Tax Allowance<i class="icon link-external"></i></a></li></ul> | | GP0|#05d49be3-4eee-4010-86f2-6615c2a7e623;L0|#005d49be3-4eee-4010-86f2-6615c2a7e623|Urban development zones;GTSet|#ef3a64a2-d764-44bc-9d69-3a63d3fadea1;GPP|#cc673c3e-f34b-48a5-86c7-713aa556fb7a;GPP|#ce2f744d-a7d0-4f70-9e09-6cef4e0b7eb4;GPP|#e88ff549-973f-4e3c-a46c-cfbe61bd6a24 | | | | | | | | | | | | | | | | UDZ is a tax incentive administered by SARS, and encourages developmet in inner city areas | 0 |
